China currently controls approximately 70% of the world’s rare earths mining and 90% of global rare earths processing, which leaves the supply chain exposed and has pushed critical minerals higher on the national security agenda, especially as demand for critical minerals is projected to double or even triple by 2030. On Feb. 2, President Donald Trump's administration confirmed the launch of “Project Vault,” putting almost $12 billion behind a strategic reserve of rare earth elements designed to reduce China’s grip on the sector.
The initiative will be funded by a $10 billion loan from the U.S. Export-Import Bank and nearly $1.67 billion in private capital, creating a stockpile similar to the national petroleum reserve and aimed at protecting auto, electronics, and defense manufacturers from supply disruptions. Three companies that could benefit from this policy shift are The Metals Company (TMC), Critical Metals (CRML), and NioCorp Developments (NB).
